Home Depot pilots PayPal

Customers can use their PayPal accounts to pay for merchandise by either entering their phone numbers and PayPal PIN, or by swiping their PayPal cards.

A spokeswoman for PayPal confirmed the test but would not identify the location of the stores. She said a "small number" of PayPal employees are in the pilot stores to help walk customers through those transactions.

PayPal, a division of eBay, is competing head on with Visa, MasterCard, and other credit card companies by developing a magnetic strip card that account holders can use in bricks-and-mortar stores. Traditionally, PayPal was a system utilized by consumers to complete Internet transactions.